Old (i.e. over three
years!) does not always mean low value, especially if
the computer has been upgraded subsequent to purchase.
There is no secret formula and certainly no reliable
formula for calculating the indemnity value for
computers. The annual diminishing value rate of 40% set
by Inland Revenue is only one indicator, and not
foolproof.
We are constantly researching the market prices of
second-hand computers to obtain equitable valuations,
and find it to be the most accurate indicator. We also
find that many of your clients check on current
second-hand values, and have sound knowledge of the true
worth of their equipment. Unless the indemnity value
given to you is based on good research your client will
feel cheated and bitter through not being able to
replace theirs with a second-hand computer of similar
specifications.
We often base our
indemnity values on available reconditioned second-hand
computers. These computers are mostly ex-lease.
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